News Companies ArcelorMittal Kryvyi Rih 582 09 January 2025
The company disputes tax claims for UAH 1.35 billion and demands a transparent approach to business
PJSC ArcelorMittal Kryvyi Rih has reported unjustified pressure from the Ukrainian tax authorities. In November 2024, the company was subjected to an audit on rent for subsoil use for the period 2015-2019. Representatives of the company claim that this period has already been audited twice, and the previous tax conclusions were canceled by the courts of three instances.
Based on the results of the last audit, the tax authority issued a tax assessment notice totaling UAH 1.35 billion. The company has already filed objections and is preparing to appeal this decision in court.
Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, called the situation unfortunate.
“We are once again forced to defend our position in a case that we had already considered resolved, including in court. We are talking about the accusations against ArcelorMittal Kryvyi Rih of allegedly evading subsoil rent payments for the years 2015-2019. We believe the tax authority’s claims are unfounded. The company, which operates as part of a global corporation, appeals to the state and demands a civilized approach to resolving the dispute, transparent and equal conditions for all participants in our industry,” he said.
The dispute is about the approach to royalty calculation. The company pays royalties based on the iron content in the ore, following the provisions of the Tax Code in force at the time of the audit. However, the tax authority insists on a different methodology.
Representatives of the mining and metals industry note that similar disputes with other companies have already been resolved by the courts in favor of the taxpayers.
Over the 19 years of its operations in Ukraine, ArcelorMittal Kryvyi Rih has invested more than $10.7 billion and paid more than UAH 103 billion in taxes. Despite the military challenges, the company remains the largest producer in the industry, providing jobs and supporting the country’s economy.
The company emphasizes that it will continue to defend its rights and legitimacy in the legal field to avoid setting precedents for undue pressure on business.
As GMK Center reported earlier, ArcelorMittal Kryvyi Rih expects losses of approximately $100 million in cash by the end of 2024. The company has large strategic investments of $150 million a year, faces a number of emergencies and rising electricity and logistics tariffs. All these factors make it impossible to reduce losses to zero.
